Current Refinance Rates - Compare Rates Today | Bankrate (2024)

FAQs

What is today's interest rate on a refinance? ›

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.87% from 7.00%, with points dropping to 0.57 from 0.60 (including the origination fee) for loans with a 20% down payment.

As a rule of thumb, experts often say that it's not usually worth it to refinance unless your interest rate drops by at least 0.5% to 1%. But that may not be true for everyone. Refinancing for a 0.25% lower rate could be worth it if: You are switching from an adjustable-rate mortgage to a fixed-rate mortgage.

Mortgage rates are currently expected to continue trending down through 2024 and into 2025. The Mortgage Bankers Association thinks that 30-year mortgage rates could fall to 6% in 2025.

While it may be easier to just go with your current lender when refinancing, you might be able to get a better rate — and save money — by going with one of their competitors.

While current rates have increased from the 2020 lows, they're still competitive compared to pre-pandemic years. Rates are also expected to drop in 2024. So, if your current mortgage rate exceeds the current market average or you want to tap into the equity of your home, it may be a good time to refinance.

Will mortgage refinance rates go down in 2024? ›

Mortgage rates fell earlier this month in response to cooler-than-expected inflation data, and they're expected to fall further throughout the remainder of 2024 as long as inflation continues to decelerate and the Federal Reserve is able to start lowering the federal funds rate.

You can't get a lower interest rate: If your goal is to reduce your interest costs, right now isn't the best time to refinance. You're likely to end up with a higher rate, plus you'll need to cover closing costs on your new mortgage.

Cash-Out Refinance. You don't need to change your rate or term when you refinance – you can also take money out of your home equity with a cash-out refinance. You accept a higher principal loan balance and take the difference out in cash with a cash-out refi.

If you have a lot of high-interest debt, getting a cash out refinance at a higher interest rate than your current mortgage rate might make sense. With a cash out refinance, you replace your current mortgage with a new mortgage for a higher amount and get the difference in cash at closing.

Is refinancing worth it? If it frees up money in your monthly budget, reduces the overall cost of the loan or helps you achieve some other financial goal, refinancing can be well worth the work and money. “It's important to determine your break-even point,” says Linda Bell, senior writer for Bankrate.

Whether or not you qualify for 2.25%, rates are ridiculously low. The truth is, the lowest advertised rates almost always go to top-tier borrowers; those with excellent credit scores and 20% down payments. So a 2.25% mortgage rate will be out of reach for many.

In most cases, refinance rates are a bit higher than purchase rates, for instance, cash-out refinance rates are higher because it's considered riskier. Lenders also assess your refinance rate based on factors such as your credit score and the number of assets and liabilities you have.